mark crumpton. let's begin with a check of your "first word" news. john kasich has officially ended his bid for the republican presidential nomination. the governor made the announcement in columbus. kasich: as i suspend my campaign today, i have renewed faith, deeper faith that the lord will show me the way forward and fulfill the purpose of my life. mark: kasich did not mention or endorsed front runner donald trump, now the gop's presumptive nominee. a huge wildfire has destroyed neighborhoods and forced the evacuation of fort mcmurray in western canada.

the city is home to the alberta oil stand, the third-largest reserve behind saudi arabia and venezuela. the environmental protection agency is accused of being almost 30 years late in issuing rules for the handling of wastewater from oil and gas expiration. environmental groups are suing the agency and seeking a court order compelling the epa to adopt measures regulating the disposal. the transportation security agency is adding more screeners and bomb sniffing dogs to congested airport hubs. securityestimates of this summer. global news 24 hours a day, powered by the 2400 journals and 150 news bureaus around the world. i am mark crumpton. ♪ ♪

emily: this is "bloomberg west." i am emily change. -- chang. coming up, investors shift tesla shares in the high gear. expectedr than loss. two top executives leave. we will break it all down. the beats go on. at apple the tech giant changing the tune of its music with a remix of its user interface. we have a deep dive later this hour. tivo's second coming. the pioneer that became a victim of its own success is back in the game after a $1 billion acquisition by robi. what's in store for the second act? i will speak to both ceos ahead. tesla shares popping in after-hours trading after the company reaffirmed plans to deliver 80,000 to 90,000 cars this year. tesla beating estimates with an excited loss of $.57 per share in the first quarter and it is adjusted gross margins of 21.7%.

the news comes hours after two top executives said they are leaving the company. here to discuss in more details is true car's vp eric lyman and our niedermayer. i will start with delivery. tesla says yes, we can make these deliveries this year but there seems to be a lot of skepticism around whether or not they can actually meet this delivery target. what is your take? >> well, yeah, there are definitely some times that there may be some issues with making deliveries. sales last month did not look particularly good according to what i've seen. it seems like it is always a question of is a demand-side? is the model x a dud? is it tapped out? as usual, tesla is saying production has a sleeping bag in the conference room off the assembly line.

a lot of this gets back to production. emily: it sounds like typical. elon. eric, would you reiterate what ed just said? it,ou could put money on do you think they could deliver that many this year? eric: i think they could. they have had a rash of some setbacks. there are lots -- there is lots of chatter online about the build quality of the vehicle. obviously, they had an 18 month delay with the model x. it has not been a clean launch by any stretch for tesla with the model x. emily: ed, let's talk about overall numbers. deliveries aside, what are your big takeaways? ed: i think it will be a huge challenge for them to deliver. they are looking now at potentially 100,000 to 200,000

orders here in the second half of 2017, which is just a huge aspirational target r elon musk. and you have got that while you have the head of manufacturing and production leaving the company. it seems interesting timing, right when they need some expert s to understand the manufacturing and production process for tesla the most. they will be absent with this ambitious goal coming on the horizon very quickly. emily: one of their highest paid executives, as well. how big of a loss is this? it is massive. they are accelerating for model 3. i think there is already skepticism about whether or not they can get that out on the previous timeline as they never really met those timeline targets before. another accelerating on the same

day that they lose two top vp's for production, elon musk was just on the call talking about how they have some announcements lined up about who might be stepping into these production and manufacturing jobs. they say all these things and have this ability. but they keep losing all their talent. and their salaries are some of the lowest in the car business for the same positions. it's definitely a huge risk. but plugging one person and to replace another, you can do all kinds of things with that. the history of the industry proves is that it is culture. that drives quality manufacturing toyota has proven that. tesla still has not shown it can really develop a long-term focused culture that makes these improvement. we see this back-and-forth and people coming and people going. emily: what about the model 3.

does it seem like they will be able to stick to that price of $35,000? >> i think they have to at this point. what i have heard is that some of the orders, the majority of the orders on the reservations online are coming in well above $40,000 or $45,000. whether or not they transacted a lower price -- we saw a similar phenomenon with the model s. people were really upping their purchase into a higher-priced class, which is a great opportunity for tesla to present price that at one at a different price. they are certainly committed to that $35,000 price. emily: what about the powerball, the tesla battery, and we're starting to see the first reaching customers? what are the reviews so far? >> to be honest, i focus on the automotive side, so i really don't have -- i have not read a lot of reviews. i am sure they are hoping that will provide enough volume to

get the gigafactory running. it's a huge plant. they have to get the production of a model 3 up to meet that production they will be doing. if the demand is good for these power walls, that will help a lot. the problem is there is a lot of competition. it's a commodity business. toy are certainly not going margin out of this power walls. unless they are really blowing people away, which i have not seen, it's hard to get too enthused about a stationary battery as a product. i'm not confident it can do it it to do forneed them. emily: i've never heard of a battery plug anyone away, but an interesting point. ed niedermayer, thanks so much for joining us. staying on earnings, shares in zynga are surging after the gaming company posted first-quarter results that beat estimates. they said consumer spending on games rose 8% from a year ago. this is the first quarterly

report under the new ceo who replaced founder mark pincus. he was brought into "excel innovation." the company says he shares a common vision on the direction of social gaming. tears were down about 14% before wednesday's close. coming up, fitbit out with earnings, and shares are plunging in extended training. earnings guidance on per share. what does the company need to show investors? ♪ emily: and the one-year-old streaming service, apple music. can a makeover help apple reclaim its dominance in music? that story later in the hour. ♪

♪ emily: now to ellen pao. it was launching a new initiative called project include with other silicon valley women. in my conversation yesterday, she told me some companies have already expressed interest in the project. she is working on a book that will chronicle her experiences in silicon valley. conversation, i asked her about michael morris at sequoia capital who once told me the firm would focus on hiring women but he would not "lower the firm's standards to do so." later on he clarified and said there are many qualified women and they are working hard to find them. listen to pao's reaction. to his comments. ellen: it is hard for people to change. there is a system that works well for them, and they don't have the ability to think

outside the system. for us, what we are trying to do is bring in all these different views. we have eight women that have not phenomenal things, each a tremendous leader in tech. these are recommendations. you can not think about them and continue to live in your world, or you can open up and really hear other people's ideas and think about what are you missing by having the static system? emily: that was my exclusive interview with a former junior partner at kleiner perkins and interim ceo at reddit. you can check out the full interview at bloomberg.com. fitbit shares are sliding after hours as the company issues weaker second quarter guidance. the company reporting a first-quarter revenue of $505 million, beating wall street estimates and profit of under $11 million. their first year as a public company has been rocky and the stock is down over 14% since its june ipo. what will it take for the company to prove itself to investors?

joining me from boston is ramon lomas, first of all, what you make of this miss? ramon: i think it is a pretty big miss but we are looking at this moment in time. they key going forward is fitbit is not the kind of company that will stay still. we have a lot more development and a lot more product and a lot of other experience to look at right now. if we can just be patient and say let's look at how the run that develops, i think we will see a lot more than what we see here today. emily: let's talk about their new activity trackers. alta and the blade. how well are the new trackers doing? ramon: if you look at the counts they made, altogether for all the devices, they sold about 5 million units. alta for about 1 million and blade for another million. aside from them just being devices, take a look at what

fitbit is doing. they are bringing out devices you can actually wear when you are working out and waited you were going to be out on the town. you don't always have to look like you're going to the gym. look at these two devices and keep in mind these are not launches from the start of the quarter. they were staggered out. to have one million units in less than 90 days, i would consider that rather successful. there are other companies that would like to duplicate a kind of success as well. emily: from your perspective how good are they doing against the apple watch? by some estimates fitbit already has more than 60% of the wearable consumer market. ramon: we are looking at two different kind of companies here. if you look at just fitbit, a very tight focus on health and fitness. that is been their dna from the very start. they tell you how many steps you take, calories burned, sleep at night. that is what they are focusing on. apple with the watch is trying

to be many things, all things to all people. communications device, a place to play applications, games, social networking, communicate back-and-forth. a lot of people look at the device and say do i really need this right now? i still have this great smartphone in my pocket. the walk as a whole, a lot of people are trying to figure out what can it do that says to me i really need this? so to have these two companies butting heads, i don't think that the right way to look at it. i think there is still space in the market. there is a very nascent market that really started coming up a couple of years ago. there is a lot of space to grow. for fitbit, it's been around for several years and they are developing and doing rather well at that. apple, this is a first-generation device.

we have to take it warts and all and there's some terrific things about it. come 2018 or 2019, we will look back and say the number one fitness trackers looked like back then? quaint.oked really emily: we spoke with james park a few month ago and here's what he is able to longer-term vision. james: the long-term plan for fitbit is we are not just a wearable company, we are additional health company. we are helping people achieve their goals. work with stress. wearables. to help people address those goals emily: ramon, how successful do you think fitbit can be as a digital wellness company and selling a broader range of services? ramon: i think that is where the market as a whole is going to go. we have got to start thinking about wearables as a device you

slap onto your wrist. eventually it will be targeting everything else in your house. with fitbit the arty have wi-fi enabled one they can talk to you, whether you like it or not. consider this. if you had your fitbit or whatever other device and it talked to your refrigerator or your hvac, more about how you been doing since your last appointment, there is golden that. if fitbit will be a will to realize this kind of vision, it will require a lot of software. it will require the hardware, and he have to build the network out to talk to all these devices and people and systems. it's entirely holistic so the -- by the time you put it on at the start of the day, not only are you going to see what you've been up to, but all this data is being shared to all these devices and systems. think a much better life can be if you have a kind of information. emily: ramon, we will have to leave it there. ramon, thank you so much for joining us. up next, a match made in tv

heaven. robi and tivo prepare for a monumental shakeup. we will hear from the ceos of both companies next. ♪

emily: youtube could be coming up with its own pace of fiction services for a bundle of tv channels by early next year. the project is called "unplugged." it's one of the biggest priorities right now and it has been developing since 2012. executives have discussed the plans with most major media companies. including viacom and cbs. they are said to be any for a package price of less than $35 a month. a subscription would complement what is already the largest ad supported video site in the world. now, staying in new media rovi and tivo are taking on the industry that is changing faster the convention "house of cards."

last week rovi agreed to buy tivo in a deal valued just over $1 billion. it's at a time when they maybe more important than ever. joining us now to discuss the deal is the rovi ceo tom carson , who will lead the new company, and tivo interim ceo naveen chopra. tivo is known for dvring. rovi is the guide that tells us what is on. what is this combined company going to be known for? what is your focus? tom, we will start with you. tom: thank you for having me on. we just came back from a meeting. excitement is incredibly high. the combined companies have an incredible arsenal of technologies for allowing consumers to get to the content they want. so for us this was all about the product side of the business and

helping us formulate a company that is just better from a product perspective than either ourself. can be by emily: tivo has seen the march of technology in this space for now a couple of decades. the sec may be opening up the set-top box market to more competition. how would it affect you guys if google gets into the market, if amazon, apple push even further into the set-top box market? >> it's kind of all speaking to a lot of the rationale behind tivo and rovi coming together. the world of television has changed phenomenally of the last two or three years. as you pointed out. a lot of new players coming in, consumer behavior has changed substantially. we see this as an opportunity to take what tivo has done, which many view as the best way to watch television and the gold standard, and bring it together with a lot of these smart plumbing that rovi provides the

that help make all possible. to the extent that the sec is able to create more opportunity for opportunity in that arena. we think the combination of these two companies positions us even more strongly to play with a lot of very large silicon valley companies being a part of that, as well. emily: right, so you guys have a powerful portfolio combined. we have seen these companies in litigation with the likes of comcast, netflix, google over patent licensing issues. are we going to see more of that? tom: this deal was really not about acquiring additional intellectual property. sometimes rovi gets a reputation for being more of a patent bully. and frankly, the reality is we work very hard with our prospective licensees to come to an agreement that is fair in -- and mutually agreeable.

less than 2% of the agreements we have actually end up coming from a litigation. so the vast majority of the license agreements are done amicably. so this is really again this is about the product business. earlier, this is a great team of two companies that really do in their respective areas have great product technologies that want to combine to twice the size. emily: some of these guys are developing their own ip for tv channel guides as well. do you have ip that they need? tom: i think the way to think is someone doing a search for video content in whatever way, shape or form they

are doing it has a high probability of needing a license under the rovi patents. even in cases where we have a agreements with our discussions with prospective licensees, what we find is that they have a very high interest in a lot of the product technologies because the product technology we have between the two companies really is the best of the breed. it allows the dynamic of the discussion to be not just on an intellectual property but on cutting edge technologies that they might need for their own products. emily: we will be watching the future of set-top boxes as a rapidly evolves. rovi ceo tom carson and tivo ceo naveen chopra, thank you so much. coming up, a year later apple music has not gone platinum. details on their plan, next, and if you like bloomberg news, check us out on the radio. you can listen on the bloomberg radio app, bloomberg.com and in the u.s. on sirius xm. more of "bloomberg west" up next.

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♪ emily: top stories this hour, project agents with china slowly falling, but to the outbreaks pessimism. pmi came at 51.8, down 4% -- 0.4%. the china state council meeting said more must be done to promote growth in private investment areas the aussie dollar jumped more than expected after the march tray data after the imports and rising iron ore prices. ed twocus on this shrink dollars over $3 billion, it was a month earlier. up one .4%.ions

the biggest recall in the history, double in size. u.s. regulators ordered takata to replacement 35 million. recalls will take place in five days between now and the end of 2019. more deaths have been linked to the faulty deflator is. those are some of the headlines. let's get the latest on the markets right now. for that, we go to david. david: before i get to the macro picture in the gm fouts and again, the global movers, let me point out one particular stock in taiwan. cutting neutral from the performing, the stock basically taking a beating down 10%. it comes down to the supersize thing. lenovo,oem for electric

hp, samsung electronics. basically in the process yesterday, coming up with a note . they are cutting their ratings for the stock. one other thing i want to point out, when you look at what is happening across asia, not all bad. but southeast asia, that seems to be the weak spots, markets just coming out with a note saying sales, yes, valuation justified. consensus eps down 5%, trading pe.g averages as far as you look at the worst had markets in asia, all from southeast asia, all performers from southeast asia and indonesia closed to date, we have elections coming up. that is something to see. very quickly before we go, one function i want to show you, ratt.go. credit ratings down in china.

50 so far this year, barely in the second quarter. this was 44 for all of 2015. when people say what is the impact of a slowing economy, this might be it. watch this. emily: welcome back. apple is in the spotlight yet again, focus on your old music streaming service. the tech giant is trying to revamp the service and is expected to be unveiled at the company's worldwide developers conference in june. the changes come on the heels of the exit of top executives. and lukewarm reviews. will apple's pending changes give it an edge on the competition? here to discuss is alex webb who covers apple for us and broke the story about a lot of the drama going on inside the apple music division. so first of all, paint a picture for us. what is happening? alex: drama is a good word. it is the rich and varied a of

characters, and that is the problem. a lot of people involved, on the one hand, people that existed already in itunes. on the other hand, people the acquired with beat. getting them to work together has been challenging and a lot of guys at each have left. emily: including the former ceo. he is already out. alex: the beats is extremely service. emily: at the same time you have jimmy ivy is still there. he has no title. what is his role? alex: he is in the midst of it. he does a lot on the live music side. talking to artists, getting artists, talking about the breakout thing on apple music. the actual product development side, there are questions about that. we are hearing the first iteration, not so much. a bit more in the one they are developing now. emily: the big hope is that somehow apple can marry its download business and the itunes business with the streaming business.

it makes sense because it gives him an edge with artists like adele who don't want to release their albums on streaming services. what kind of changes are they thinking about making here? alex: a lot of it is the music interface. i don't know if you know it how it works, but it is very hard to use. that's the kind of thing they will be changing. it's confusing for a lot of people. the thing is they don't want to , cannibalize the download business too much. it still works, three times more than the streaming business. they are trying to balance the sothey are trying to balance the two interests. , emily: you describe a potentially bureaucratic environment where it is really difficult to get new ideas approved. can you explain? alex: yes, if you come out of a startup, you can come up with an idea, and the next day he can be a product. it's different when you move to a $550 billion company. and every single proposal at apple music had to be signed off by a vice president.

and then, that slows things down a lot and it is frustrating to a lot of the beats people. emily: tim cook said he's more open to acquisitions, and beats with the biggest one ever made at $3 billion. do you see apple attempting to do this again? alex: yes he intimated in the past couple of weeks he is opened to bigger deals. this whole drama speaks to the extent to which apple is able to integrate different cultures. it has a very specific culture at the company. it suggests they are not terribly adept at bringing in big acquisitions and doing it well. emily: i want to talk about ubs analysts putting out apple's future and the release of the iphone 7. he says there is hope for the latest iphone cycle after disappointing sales of the iphone 6s. "bloomberg markets" alix steel and scarlet fu caught up with him and find out how much we can ask for from the apple upgrade

cycle. >> investors are questioning whether apple has reached a new level of maturity. and clearly in the last six to 12 months we've seen , disappointment in terms of upgrades. our survey of 6000 consumers in five countries suggests the iphone 7 in september is likely to see of great demand better than the six, but not stronger than the 6s. that suggests moderate unit growth, maybe 5% to 10%. the days of 20%-30% growth have gone by. it is not necessarily peak iphone. mark: do we know anything -- alix: do we know anything about the future of iphone 7 yet? what it will contain? >> there is a little bit of talk about dual cameras and so forth. it doesn't appear on the service -- on the surface it will have dramatic changes, nothing like the 6 they gave you the big screen phone. we do expect to have an old as screen, but that regeneration is probably off. let's say it doesn't have significant new features.

is there enough pent-up demand to see people moving? my guess is there probably is. they relate see real feature differentiation. we don't think it's likely but there are still over 200 million iphone users that are not going to a big screen yet. so we do think that potentially could provide some growth in fiscal 2017. scarlet: including alix steel, you saw the tiny one. alix: my hands are too small to have a big screen. i don't know what i will do. what kind of price and upgrade cycle do you think is factored in right now for the stock price? >> probably not too much. i would say the apple stock price is not discounting too much good news. it is probably looking at flat or maybe even slightly down growth in the fiscal 17. what you should be looking at is the fe, which they just introduced. it's in the old four inch format. it is a great upgrade for people that have 5s, 5c. it has relatively new technology. we think that will not so much attract new people in india, it is still too expensive. but about one third of the apple

base is on the old four-inch format. we think that is likely to be a sowe think that is likely to be a pretty good upgrade. that contributes to some potential growth in 2017. scarlet: another big piece of news is that carl icahn has exited his position and apple. why was that bad? is it because investors interpret that as he can't get what he wants? alex: he made $2 billion which is not all bad. he was prompting the company to do more in stock repurchase , which they have done, maybe not as much as he wanted. he said that if apple is up your intimacy play, -- a pure annuity play, it would be worth over $200. who knows for sure what he really took the position down that he did mention china. china's revenue is down 26% the last quarter for apple. china is two thirds of apple's growth. if problems continue to occur in china, it will be difficult for the stock to dramatically rebound. emily: ubs analyst steve. still with me is alex webb. he couples -- covers apple for

us. what is your take away he said? it makes sense that the iphone 7 would have increased demand of about 8%. alex: is probably reassuring to investors. the question has been to extend to which there is pent-up demand. he seems to think there is. if you look at what we have in the system, there is a fiscal year sales decline predicted but i think it is a 4% decline. that is the current consensus. that is far less the sort of 20% decline few have seen in the quarter so far. emily: there is a narrative going on. carl icahn sold all his shares. there is some questions about whether apple really is a growth stock in the future. when we look at the services, and this goes back to apple music and the idea it will ultimately make up for some portion that hardware will not account for the future, how much growth are we expecting in the services business? like how much potential does , apple music have if they get it right? alex: your got to think about this in a few different ways three of.

as a proportion of apple's total revenue, it's not a massive percentage. about 11.5% total. if you compare that to netflix, it is a big old business. pushing $20 billion in revenue for services. but is everything, music, icloud, sales on the app store. 15%if they are growing now to 20%, which they are, it is a big business for them, but not as big as the itunes business. the hardware is where they make the money. emily: we will be watching in about a month. alex webb, thank you so much. now for the second time apple , has lost a battle for the use of the iphone trademark in china. a beijing court has decided a little leather goods maker could use the label for its wallets and its purses. apple failed to prove that the iphone was "a famous brand" across china before the small firm applied for the trademark in 2007. that is because the company did

not selling its smartphones in china until 2009. apple still has the trademark for the iphone name on mobile devices but no full ownership beyond that. coming up, cbs earnings beat expectations thanks to ad sales. les moonves tells us how traditional advertising is standing up to digital, next. ♪

emily: cbs just posted first-quarter profits that beat estimates citing the super bowl and grammy awards as a catalyst 48 40% surge in ad sales. les moonves joined david weston on bloomberg go this morning. he started by asking how the broadcast advertising business continues to succeed despite the emergence of digital advertising.

>> well i think are are a lot of , things going on. number a lot of money that have one, potentially moved to digital suddenly people are , realizing that not all digital is that great. that there is a lot of false viewing on digital. and i think a lot of money is returned to network television. in addition network television , is proving it's doing better than most of the basic cable networks. we are seeing a return to the broadcast. there is no better bang for your buck. and as you said helped by the , big events like super bowl and grammy's but the underlying , growth was 12%. we are pretty excited going into the up flow. david: we look at numbers from facebook, they seem to be growing in the sky. >> there are certain digital places. facebook, google doing extraordinarily well. we have a number of digital assets doing well. people are saying to best buy is broadcast along with digital.

and obviously the facebook's are doing extremely well, but not all digital is created equal. david: you mentioned your digital assets. tell us about those. in have cbs all access, cbs showtime. , of those, which are doing the best right now and which have the greatest potential as you look at them? >> i am not going to pick out among my children. actually i'm extremely pleased. ,all three of them have only been in in operation for less than a year or little more than a year. we could not be more pleased with the results on all of them. cbsn is a nonprescription based, -- subscription-based but the , numbers are growing every day, especially during the election season. showtime ott and cbs all access are doing extraordinarily well. they are beating projections. as we look forward to adding "star trek" in january. bump and thevide a continued strength of the showtime lineup. the ability to make it easier to

get showtime. so in all honesty, i am extraordinary pleased with all three. >> recognizing they are relatively new, when will they become material to the revenue line of cbs? >> it is already happening right now. i think in the quarters to come you will see some more numbers, , more transparency into what we are doing their. the revenue is beginning to make a difference, and in 17 it will be a very large number david:. staying with the free structure, -- c structure you expect $1 , billion this year coming out of the stations. will that continue to grow past 2016? alex: we have already said by 2020 we expect have $2.5 billion in re-trans and reverse copies. those numbers continue to go up. people are paying more for our content, and in addition, you have the addition of the skinny bundle plus all access.

what we are saying is we provide cbs the matter how you want to -- no matter how you want to get it. and for sure the reverse comp fees are growing substantially. david: when you talk about the skinny bundle, what is your concern about cannibalization of some of your existing outlets? >> we are willing to put our content everywhere as long as we get paid for it. there is a lot of noise in the marketplace about the skinny bundle becoming much more important. obviously, we live in a 180 channel universe which a lot of people do not want to pay for. so the skinny bundle is going to become more and more important at a lower price point. people are going to get only those channels that they want. so we are basically saying , however you want it if you , want to be in the 180-channel universe, we are fine with that. if you are in the 15 channel universe, we are fine with that. and finally, if you just want cbs a la carte, we are find that -- fine with that as well. david: you have always been a

big cheerleader of content. you have always been really into content. when you look at a deal with dreamworks, did you get a chance to look at it? would you have liked to buy it? was your interest in paramount that you get expand your content-based? >> i think comcast made a smart deal getting dreamworks animation. they are a big company, they are a big teacher film company, they are already in the animation business. dreamworks animation, a very good company. it would not have been a great fit for cbs. we are still primarily a television company. are we looking to expand in content areas? absolutely, but he needs to be the right fit for us. emily: that was les moonves with our very own david weston. up next, everything you need to know before alibaba's earnings report before the bell on thursday. we had to hong kong next are you and we bring you all the best interviews in the week. more my exclusive conversation with ellen pao, former interim

ceo of reddit, former partner at kleiner perkins that he sued in a gender discrimination case. the best of "bloomberg west" this weekend. ♪

emily: thursday before the bell, taking a close look on alibaba when the company reports for the fourth quarter. they have more profit than ebay and amazon combined, and they more than doubled their profit in the span of a year, but you would not know it looking at the stocks. they lost whether one third of their value since peaking after record ipo in 2014. the reason is they become a proxy for the chinese economy as it navigates a bumpy transition from manufacturing to consumer spending. what will alibaba have to show investors? joining me is stephen engle of bloomberg news. so stephen jack ma has come out , and said in the south china morning post he has a lot of faith in the chinese economy.

what are you going to be watching when it comes to alibaba's numbers? stephen: we will be looking at a number of different things. you are absolutely right. stockompany, at least the has been the unloved giant on , wall street because the shares have lost about one third of their value since that peak of just under $120 a share after its big ipo in september of 2014. they have doubled their profits in a year. they had revenue growth of at at least 20% a year. they are loved and the stock is -- they are unloved, and the stock is trading at about $75 right now. what we are at before the bell is a number of things. the investors want better revenue growth. before ipo, they were having revenue growth in the 45% range. we are expecting about 33% revenue growth for this current fiscal fourth-quarter. investors want more and more clarity as well on margins. also, alibaba has been on and acquisitions spree.

they bought a big stake for southeast asia expansion in e-commerce. they want to see how they are going to monetize that investment. and going even further forward, perhaps an ipo for ant financial, the owner of alipay. it could be, it could unlock a lot of value for alibaba investors. this is a division that is valued somewhere near $60 billion. so there is a lot of unlocked, untapped areas where investors are hoping to get more clarity. emily: now what about all the , acquisitions that alibaba has made across a lot of different areas? you know how successful have , these acquisitions actually been? stephen: yeah, they are going into a lot of areas. video content, movies, the south china morning post. jack ma bought to that post newspaper here in hong kong. he is really going into a lot of different areas. he has stated he wants about

half of revenue to come from overseas eventually. but you know what? overseas revenue has declined actually the last three straight quarters. it's only 6% of total revenue. so that is an area where he is still needing to go a long way to achieve his goals. emily: let's talk about international growth. because you know jack ma said , international growth will contribute significantly more to the bottom line, but it has been slow going. how much progress are they actually making? stephen: yeah, i mean it is slow , going because right now this is a domestic play. in beijing last for singles day. september the incredible amount of volume of goods and dollar figures that have been transacted for the chinese market. that is where they are really getting most of the bulk of their revenue right now. they have huge competition from the likes of jd.com which is seeing growth of 50% the last three quarters. they have a lot of domestic competition. that is why jack wants to go abroad.

but it has been slow going. i think southeast asia is an area where he is pushing forward with his e-commerce goals. emily: good times in beijing with you. thank you so much for joining us. stephen engle in hong kong. it is time to find out who was having the best day ever. today's winner is respawn entertainment. and all you star wars fans, will burstrespawn onto the gaming scene in 2014 with titan fall, announcing they are working with ea to create an all new third person videogame set in the star wars universe. no other details in the game were released, but enough to fuel the frenzy on this unofficial star wars holiday, may 4. may the force be with you. that does it for this edition of "bloomberg west." tomorrow on the show sal kahn m.i.t.s history from does silicon valley and his latest plans for revolutionizing education. that is all today from san francisco.

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♪ manus: prime minister davutoglu expected to quit having lost a power struggle with the president. investors increasingly nervous about the strength of the global economy. last man standing donald trump is the sole republican contender after john kasich quits. he now must unite a divided party. it is